July Budget 2015

This was the first Conservative only budget in nearly 20 years. Apparently this is a ‘new contract for the country’.

Here are the main points:

New living wage to be introduced for workers over 25. £7.20 from April 2016 up to £9 by 2020

Corporation tax to go down to 19% from 2017 and 18% from 2020

Tax relief on buy to let mortgages restricted to 20%

Dividend tax credits to be abolished and instead you can have £5000 per annum tax free. The remainder will be taxed at 7.5% if in the basic rate band or 32.5% and 38.1% for the higher and additional rate bands respectively. Additional tax liability will be around £2000 for those who tax an £11,000 salary and dividends up to basic rate threshold

Employers annual allowance for national insurance is increased from £2000 to £3000 from 2016

Inheritance tax limits increased to £500,000 from £325,000 by adding a family home allowance of £175,000

Reduced tax relief on pension contributions for those earning over £150K

Rent a room relief increased from £4,250 per annum to £7,500 per annum

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